Eni SpA, Italy's largest energy company reported its fourth quarter profit that exceeded analysts' estimates after oil production increased.

It revealed its net income to touch 641 million Euros ($876 million) for the quarter ended Dec. 31, compared with a loss of 874 million Euros a year earlier, Rome-based Eni posted today in a statement. Excluding one-time items and gains or losses from inventories, profit surpassed analyst speculations. Eni proposed to cut its dividend by 23 percent to 1 euro a share.

Italy's largest oil and natural gas company by volume revealed Friday that net profit in the October-December period was €641 million ($877.1 million), compared with a net loss of €874 million a year earlier. Sales fell 9.6% to €22.19 billion from €24.55 billion.

Chief Executive Officer Paolo Scaroni is planning oil ventures abroad to maintain output. Eni is expanding in Venezuela, where it will divulge $18 billion in projects, and Iraq, where it plans to invest about $1 billion a year with partners to boost production at the Zubair oil field. Eni said today it expects 2010 production "not lower" than 2009.

The economic meltdown has forced some oil producers to delay projects, merge units and reduce payments to shareholders. Oil producers' earnings were boosted in the fourth quarter as crude oil trading in New York surged 78 percent last year, the biggest annual gain since 1999.